BUS250 Ch. 3 Terms & Definitions

Question 1

Gross National Income (GNI)

Answer 1

The yardstick for measuring economic activity of a country, this measures the total annual income of a nation’s residents.

Question 2

Purchasing Power Parity (PPP)

Answer 2

An adjustment in gross domestic product per capita to reflect differences in the cost of living.

Question 3

Human Development Index (HDI)

Answer 3

An attempt by the UN to assess the impact of a number of factors on the quality of human life in a country.

Question 4

Innovation

Answer 4

Development of new products, processes, organizations, management practices, and strategies.

Question 5

Entrepreneurs

Answer 5

Those who first commercialize innovations.

Question 6

Deregulation

Answer 6

Removal of government restrictions concerning the conduct of a business.

Question 7

First-Mover Advantages

Answer 7

Advantages accruing to the first to enter a market.

Question 8

Late-Mover Disadvantages

Answer 8

Handicaps experienced by being a late entrant in a market.

Question 9

Political Risk

Answer 9

The likelihood that political forces will cause drastic changes in a country’s business environment that will adversely affect the profit and other goals of a particular business enterprise.

Question 10

Economic Risk

Answer 10

The likelihood that events, including economic mismanagement, will cause drastic changes in a country’s business environment that adversely affect the profit and other goals of a particular business enterprise.

Question 11

Legal Risk

Answer 11

The likelihood that a trading partner will opportunistically break a contract or expropriate intellectual property rights.